This industry analysis explores the emerging phenomenon of AI washing, where corporations inflate their artificial intelligence capabilities, and warns of a pending reinsurance crisis. The author argues that these misrepresentations create a latent accumulation risk that mirrors the historical asbestos liability wave by triggering claims across multiple insurance lines simultaneously. Current market structures are criticised for pricing sectors like directors’ and officers’ liability and cyber insurance independently, failing to account for how a single corporate falsehood can activate several policies at once. The text highlights a tightening global regulatory environment, including the EU AI Act and SEC ...